1 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      2 RUSSIA AND MONGOLIAN BORDER CROSSING NO. 487 WWW.NEWS.MN PUBLISHED:2018/09/20      3 WORLD ECONOMICS REPORTS THAT MONGOLIA’S EMPLOYMENT RATE HITS A FIVE-YEAR HIGH WWW.GOGO.MN PUBLISHED:2018/09/20      4 USD HITS RECORD HIGH IN MONGOLIA DUE TO HIGHER IMPORTS WWW.CHINA.ORG.CN PUBLISHED:2018/09/20      5 READOUT OF VICE PRESIDENT MIKE PENCE’S MEETING WITH PRIME MINISTER UKHNAA KHURELSUKH OF MONGOLIA WWW.WHITEHOUSE.GOV PUBLISHED:2018/09/20      6 MONGOLIA LAUNCHES EU-FUNDED PROJECTS TO PROMOTE GREEN DEVELOPMENT, ENVIRONMENTAL PROTECTION WWW.XINHUANET.COM PUBLISHED:2018/09/20      7 COAL EXPORTS FROM TOP SHIPPER HOBBLED WITH MINERS FACING CONSTRAINTS WWW.MINING.COM PUBLISHED:2018/09/20      8 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      9 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      10 YUSAKU MAEZAWA: THE JAPANESE BILLIONAIRE WHO WANTS TO FLY TO THE MOON WWW.BBC.COM PUBLISHED:2018/09/19      ШЕНГЕНИЙ БОГИНО ХУГАЦААНЫ ВИЗИЙН МЭДҮҮЛГИЙГ УЛААНБААТАР ХОТОД АВНА WWW.MEDEE.MN НИЙТЭЛСЭН:2018/09/19     2018 ЭХНИЙ 7 САРД МОНГОЛЧУУД ГАДААД РУУ ЭМЧИЛГЭЭНД ЯВАХДАА 19.5 САЯ АМ.ДОЛЛАР ЗАРЦУУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ӨНӨӨДӨР ТӨВ ТАЛБАЙД 4000 АЖЛЫН БАЙРАНД БҮРТГЭНЭ WWW.DNN.MN НИЙТЭЛСЭН:2018/09/19     ЗАЛУУЧУУДЫН ГАРААНЫ БИЗНЕСИЙН ШАЛГАРСАН ТӨСӨЛД 10,0 САЯ ТӨГРӨГИЙН ДЭМЖЛЭГ ҮЗҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/19     WORLD ECONOMICS: МОНГОЛЫН АЖИЛ ЭРХЛЭЛТИЙН ТҮВШИН СҮҮЛИЙН 5 ЖИЛИЙН ДЭЭД ТҮВШИНД ХҮРЛЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ERD: "ХӨНДИЙ" АЛТНЫ ТӨСЛИЙН ТОГТООГДСОН НӨӨЦ 751 МЯНГАН УНЦ АЛТ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ХЯТАДЫН $200 ТЭРБУМЫН ИМПОРТОД ТАРИФ ТОГТООВ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/19     ШИВЭЭХҮРЭН БООМТООР ХОНОГТ 60-80 МЯНГАН ТОНН НҮҮРС ЭКСПОРТОЛЖ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/19     БНХАУ-ЫН 200 ТЭРБУМ АМ.ДОЛЛАРЫН ИМПОРТОД 10 ХУВИЙН ТАРИФ НОГДУУЛАХ ШИЙДВЭР ИРЭХ 7 ХОНОГООС ХЭРЭГЖИНЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/18     ӨВӨЛ ЦАХИЛГААН СААТВАЛ ХОТ ДӨРВӨН ЦАГИЙН ДОТОР Л ХӨЛДӨНӨ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/18    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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US and China emerge from trade talks without agreement www.bbc.com

The US and China have wrapped up contentious trade talks in Washington without agreement.
The two sides did not issue a joint statement or action plan after the meeting and cancelled scheduled press conferences.
The US was critical of China's trade surplus and demanded "more fair" trade arrangements.
Separately, US President Donald Trump indicated that tariffs on Chinese steel were still a possibility.
Massive trade surplus
In his opening remarks to the annual US-China Comprehensive Economic Dialogue, US Commerce Secretary Wilbur Ross criticised China's $347bn (£266bn) trade surplus with the US, saying it was not the product of market forces.
In a brief statement after the talks, Mr Ross and US Treasury Secretary Steven Mnuchin offered few details and little indication of any progress on contentious issues.
"China acknowledged our shared objective to reduce the trade deficit which both sides will work cooperatively to achieve," the statement said.

The contentious issue of steel tariffs was expected to be a difficult topic at the talks, but the two sides did not issue any statements on this.
The US blames Chinese excess capacity for a global steel glut that is hurting US producers, and has threatened to impose tariffs.
US Steel stocks were sharply higher as investors interpreted silence on the issue as an increased likelihood of US action on Chinese steel.
After the market closed, President Donald Trump told a reporter that steel tariffs "could happen", according to Reuters news agency.
Low expectations
Experts thought it was unlikely that the talks would produce any significant agreements on the most thorny issues.
In addition to steel, the US was expected to push Beijing on its subsidies for state-owned enterprises.
China was expected to focus on US refusals to sell Beijing advanced technology products.
It was unclear whether the talks covered US demands for China to put more pressure on North Korea over its nuclear and missile program.
Mr Trump has previously signalled that China might obtain improved trade terms in exchange for help on North Korea.
In May, the US and China reached a trade deal that opens the Chinese market to US credit rating agencies and credit card companies.
China also agreed to lift its ban on US beef imports and accept US shipments of liquefied natural gas.

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Price recovery sparks domestic Chinese copper, iron ore production boom www.mining.com

China's dozens of iron ore mining companies produced more in June than any month since October 2015, making the most of higher prices and record-breaking steel output.

The country's crude iron ore production jumped 5% from a year ago to 124.7 million tonnes (on a 58–65% Fe content basis tonnage is closer to 25m–30m) in June, data from the National Bureau of Statistics showed Wednesday. Year to date crude iron ore output is up 9.2%.

Number two producer Rio Tinto said in March 30m tonnes of domestic Chinese capacity had already returned to the market compared to the 140 million that exited over the previous three years.

China's refined copper production was up 12% percent from the same time last year to 768,000 tonnes, the highest rate in 18 months. If this rate of production is sustained 2017 would comfortably outpace last year's total of 8.44m tonnes of refined copper production.

China's smelters working at capacity helps to explain the decline in imports of refined metal. Data released last week showed China imported 2.23 million tonnes of copper in the first half of this year, down 18.4% compared to same period last year.

However, imports of copper concentrate continued to grow from record levels reached last year. June imports came in at 1.4m tonnes, up 4.4% compared to the same month last year, while imports for the first six months totalled 8.3 million tonnes, up 3.6%.

Zinc production was flat at 544,000 tonnes in June and down 1.2% for the first six months of the year, while lead production declined 4% to 437,000 tonnes for the month. For the first six months of the year, lead output is up 5% compared to H1 2016.

Data released on Monday showed Chinese steel output last month rose 5.7% from the year before to a record 73.23 million tonnes, surpassing April's all-time high of 72.78 million tonnes as Shanghai rebar prices hit three-and-half year highs.

Aluminium production jumped 7.4% year-on-year to 2.93 million tonnes in June, exceeding December's record of 2.89 million tonnes.

China is responsible for producing half the world's steel, consume more than 70% of the seaborne iron ore trade and some 45% of world copper output.

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President Kh.Battulga meets US Ambassador www.montsame.mn

Ulaanbaatar /MONTSAME/ President Kh.Battulga received Ambassador of the Unites States to Mongolia Jennifer Zimdahl Galt on July 19.

Congratulating the President on his election, Ambassador Galt expressed readiness to strengthen bilateral relations as 2017 marks the 30th anniversary of diplomatic relations between the US and Mongolia.

For his part, President Kh.Battulga proposed two certain issues for cooperation. The new President sought the US assistance in bringing back offshore money to Mongolia.

Secondly, the President addressed the issue of export of Mongolian-made knitted and sewn products to the US. He mentioned about a 1992 decision concerning tax-exempt export of knitted and sewn products to the country, saying that Mongolian companies couldn’t use the opportunity that time. The President inquired about possibilities to restart this business.

Ambassador Galt expressed willingness to help Mongolia fight corruption and expose illegal money in offshore regions, and said the issue regarding export will be studied. The Ambassador also informed the President of the US’ interest in working with Mongolia in agriculture and renewable energy spheres, adding that the first projects and programs are being realized. The Millennium Challenge Corporation’s Second Compact Agreement with Mongolia was also mentioned.

The sides discussed means of further solidifying bilateral relationship and possibilities of constructive economic cooperation. 
Kh.Aminaa

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External trade surplus surges www.montsame.mn

Ulaanbaatar /MONTSAME/ In the first half of 2017, Mongolia traded with 139 countries and total trade turnover reached USD 5.0 billion, of which USD 3.1 billion were made up by exports and USD 1.9 billion, by imports.

Total foreign trade turnover increased by USD 1.3 billion, in which, exports increased by USD 913.3 million, and imports, by USD 431.5 million against the same period of 2016.

In the first half of 2017, foreign trade surplus reached USD 1.2 billion, representing increase of USD 481.8 million from USD 693.3 million in the same period of 2016. The export rise of USD 913.3 million was due to increase of USD 960.9 million in mineral products export, particularly an increase of USD 989.2 million in coal export; however, export of precious metals decreased by USD 100.0 million.

The import increase of USD 431.5 million mainly reflected USD 148.2 million increase in mineral products import, especially, USD 108.0 million increase in diesel import and USD 30.1 million increase in petrol import, USD 99.1 million rise in machinery, equipment, electric appliances, USD 96.3 million increase in transport vehicles, their spare parts and USD 40.3 million in base metals.
Source: National Statistics Office
B.Amarsaikhan

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Revenue of master budget increases www.montsame.mn

Ulaanbaatar /MONTSAME/ In the first six months of 2017, total revenue and grants of the General Government Budget amounted to MNT 3,276.5 billion and total expenditure and net lending amounted to MNT 4,017.1 billion, representing a deficit of MNT 740.7 billion.

The tax revenue reached MNT 2,817.1 billion showing increase by MNT 579.5 billion 25.9% compared to the same period of the previous year. This growth was mainly affected by increase in value added taxes which increased by 48.7% or MNT 233.1 billion, 42.8% increase income taxes that amounted to MNT 210.8 billion, 34.3% increase in other taxes that amounted to MNT 74.7 billion, 52.6% increase in import and export tax revenue that amounted to MNT 73.9 billion, 8.3% increase in security contributions that amounted to MNT 47.2 billion. However there was decrease of excise taxes of 24.5% or MNT 67.6 billion.
Source: National Statistics Office
B.Amarsaikhan

 
 
 
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IFC helps Mongolia strengthen investment-climate reform and restore investor confidence www.montsame.mn

Ulaanbaatar /MONTSAME/ IFC, a member of the World Bank Group, today on July 19, signed a memorandum of understanding with the Cabinet Secretariat of the Government of Mongolia. The MoU aims to improve investment policies, promote economic diversification, enhance investor protection — thus inspiring investors’ confidence — and further attract and retain private investments.

The Cabinet Secretariat will lead the reform efforts in coordination with various government agencies. Over the next three years, the Government of Mongolia will design a coherent investment policy and launch a Systemic Investor Response Mechanism (SIRM) to deal with investors’ grievances in a systematic manner. It will also promote the country’s agribusiness sector to domestic and foreign investors. IFC will provide policy recommendations and implementation support.

“Investing in agribusiness will help diversify Mongolia’s mining-driven economy, thus creating more job opportunities,” said Munkhbat Jamiyan, Minister, Chief of the Cabinet Secretariat, Mongolia. “However, attracting new investments is not enough. We also need practical tools to protect investments, ensuring that the investors stay on in Mongolia and scale up investments.”

In 2016, Mongolia’s economic growth slowed down to one percent amid declining exports and foreign direct investments. However, starting from the first half of 2017, growth has increased to 4.2 percent. The Government of Mongolia is committed to working with international partners, including the World Bank Group, to achieve economic stability and recovery, underpinned by fiscal reforms and foreign direct investment. Multilaterals such as the International Monetary Fund and Asian Development Bank are also committed to support Mongolia toward sustainable recovery and growth.

“Stable investment policies — including early mechanism to effectively address investors’ grievances — are crucial for Mongolia to attract and retain private investments, which are both essential for sustainable growth,” said Tuyen D. Nguyen, IFC Resident Representative for Mongolia. “With the Government of Mongolia’s full support, IFC will continue to help implement global best practices, supporting Mongolia’s long-term development objectives.”

The SIRM will offer investors a one-stop channel to register and track resolution of complaints at an early stage. This mechanism will assure investors that issues are handled efficiently and resolutions are ensured without fear of retribution. With financial support from the Hungarian government, it will also use information and communication technology to make the process efficient, accountable and result-oriented.

“Supporting Mongolia’s development has been an important part of Hungary’s Trust Fund Partnership with IFC,” said Ákos Madari, Ambassador of Hungary to Mongolia. “Following the successful collaboration on food safety, we are also helping Mongolia improve its water management and investment promotion policy. We do hope our support will enable the country to attract more foreign investments and improve investment climate.’

This project will be delivered by IFC advisory services through the Trade & Competitiveness Global Practice of the World Bank Group.

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Retail price of gasoline to remain unchanged www.montsame.mn

Ulaanbaatar /MONTSAME/ During its regular session, the Government reached a decision to increase excise tax on diesel fuel and gasoline with 90 or more octane imported through Sukhbaatar, Zamiin-Uud and Altanbulag border crossings.

With the decision, excise tax on gasoline with 90 or less octane is now MNT 160 thousand per ton and 90 or more octane is MNT 180 thousand per ton. Gasoline imported through Ereentsav border crossing will be paying MNT 30 thousand, while the diesel fuels will be paying MNT 50 thousand.

Ts.Dashdorj, Minister of Mining and Heavy Industry ordered B.Lkhagva, Head of the Authority for Fair Competition and Consumer Protection, to take actions on sustaining supply, import and retail price of gasoline and diesel fuel, as well as monitoring the implementation.

80 to 90 percent of the total fuel imports pass through Sukhbaatar, Zamiin-Uud and Altanbulag border crossings. When increasing the excise tax, the Government considered it possible for fuel importing entities to not increase retail price.

For instance, the research proved the possibilities for AI-80, AI-92, gasoline and diesel fuel importers to earn 0.5-6 percent net profit without increasing retail price. And can increase them up to 3-9 percent by better management and cutting cost.

The exchange rate of MNT against USD has weakened in the second half of last year, increasing the revenues of importing entities and setting the condition of retail price increase. Therefore, the Government is taking immediate actions and lowered the excise tax to stabilize the prize.

Since the situation has changed now, the Government decided to increase the excise tax without changing the price.
B.Tugsbilig

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Daimler to recall 3 mil. diesel cars www.nhk.or.jp

Mercedes-Benz's parent company Daimler has decided to voluntarily recall more than 3 million Mercedes-Benz diesel cars that were sold in Europe.

The decision comes amid suspicion that the major German automaker faked emissions test results.

Daimler officials made the announcement on Tuesday. They predict that the recall will cost about 220 million euros, or over 250 million dollars.

Prosecutors searched Daimler's offices in May over the alleged use of a type of software that keeps emissions of harmful substances low during tests.

Local media outlets reported this month that more than 1 million vehicles were affected.

Daimler Chairman Dieter Zetsche said in a statement that the public debate about diesel engines is creating uncertainty among customers.

He said that Daimler has decided to undertake additional measures to reassure drivers of diesel cars and to boost confidence in diesel technology.

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National Emergency Management Agency collects USD 203,991 donation www.gogo.mn


A total of 21 fires reported nationwide at the beginning of July. Geographically, the fires broke out 8 in Selenge province, 2 in Bulgan province, 1 in Uvs province and 10 in of Tuv province. 
Currently, fires in Yuruu soum of Selenge province, Batsumber soum of Tuv province, Malchin soum of Uvs province and Gurvanbulag soum of Bulgan province have fully extinguished.
 
 
 
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Cabinet meeting in brief www.montsame.mn

Ulaanbaatar /MONTSAME/ During its regular meeting on July 18, Tuesday, the Cabinet made following decisions.
The Cabinet appointed D.Zandanbat as the acting Director of General Agency of Taxation. D.Zandanbat has worked in the field for many years, including on leading positions in the General Agency of Taxation and Taxation divisions of Sukhbaatar and Khan-Uul districts.
The Cabinet dismissed B.Bayarsaikhan from her post as Secretary of State at the Ministry of Education, Culture, Science and Sports on the ground of failure to exercise a professional leadership over public servants and the education sector. 
The Cabinet banned export of fodder and hay because of drought and poor summer conditions in most parts of the country. Minister of Food, Agriculture and Light Industry P.Sergelen was assigned to take measures for proper distribution of the fodder and hay that have been and will be garnered. 
Kh.Aminaa

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